NorthStar Medical Technologies, LLC, (“NorthStar” or the “Company”) a global innovator in the production and distribution of radioisotopes used for medical imaging and therapy, today announced the closing of a $100 million secured financing with funds managed by Oberland Capital Management LLC (“Oberland Capital”). NorthStar received $75 million at closing with the ability to draw an additional $25 million prior to December 31, 2020 at the Company’s option. NorthStar will primarily use proceeds from the financing to increase domestic production capacity for the medical radioisotope molybdenum-99 (Mo-99), complete programs to improve the efficiency of the production of Mo-99, implement additional enhancements for the RadioGenix System (technetium Tc 99m generator) and continue to advance its R&D activities. Approved by the FDA and commercialized in 2018, the RadioGenix System uses reliable, domestic, non-uranium based Mo-99 to supply customers with the critical diagnostic imaging radioisotope technetium-99m (Tc-99m).
“This financing agreement with Oberland Capital enables us to execute on our clearly defined strategy to build solid, sustainable momentum for NorthStar as a fully commercial enterprise,” said Stephen Merrick, President and Chief Executive Officer of NorthStar. “Market uptake for RadioGenix Systems continues in line with our strategy, with RadioGenix Systems increasingly providing customers with the important medical radioisotope Tc-99m for patients’ diagnostic tests – on time and when they need them. This funding provides NorthStar with the means to continue investment in additional RadioGenix System enhancements and to expand production capacity for non-uranium based Mo-99, including the almost complete 20,000 square foot expansion of our facility in Beloit, Wisconsin. We anticipate that the building expansion will more than double processing capacity for Mo-99 Source Vessels upon completion and FDA approval. We are also working toward final validation of two state-of-the-art fill lines at our Columbia, Missouri facility that, pending expected FDA approval this year, will substantially increase the number of Mo-99 Source Vessels we are able to ship to customers weekly. NorthStar is further investing in the future with additional planned expansions and ongoing R&D activities, all with the aim to meet customer demand and ensure reliable, non-uranium based radioisotope supply for U.S. markets.”
“Oberland Capital is a recognized leader in global healthcare-focused investments, and we are pleased to have their support and confidence,” said Paul Estrem, Senior Vice President and Chief Financial Officer of NorthStar. “Oberland Capital engaged with us to understand our business and capital needs and demonstrated flexibility in creating a cash efficient transaction that will support our continued growth as a company.” Read the full story here.